NEWTON, Mass .– (BUSINESS WIRE) –RMR Mortgage Trust (Nasdaq: RMRM) today announced the completion of an initial $ 34.3 million adjustable rate mortgage loan to refinance a property consisting of a 191,000 square foot office building and a 97,000 square foot industrial building at 10125 and 10205 Federal Drive in Colorado Springs, Colorado . RMRMs manager, Tremont Realty Capitalwas introduced into the transaction by Essex Financial Group, which advised Denver-based sponsor Flywheel Capital.
In closing, an initial advance of approximately $ 29 million was funded, with future advances of up to $ 5.3 million available for tenant improvements, lease commissions and investments. The loan is structured with an initial term of three years and an option to extend for one year, provided the borrower meets certain requirements.
Tom Lorenzini, President of RMRM, made the following statement:
“The completion of this loan further demonstrates that we have successfully implemented RMRM’s new business plan to provide first mortgage loans backed by mid-sized and temporary commercial real estate. Thanks to the efforts of our manager Tremont Realty Capital, this is our ninth loan deal, adding to our portfolio of tied capital to over $ 250 million. We look forward to growing our portfolio as we pursue our investment objective to balance capital preservation with attractive, risk-adjusted returns. ”
RMR Mortgage Trust (Nasdaq: RMRM) is a real estate finance company that raises and invests in initial mortgage loans backed by mid-market and temporary commercial real estate. RMRM is managed by an affiliate of The RMR Group Inc. (Nasdaq: RMR). Essentially, all of RMR’s business is run by majority-owned subsidiary The RMR Group LLC, an alternative asset management company with $ 32 billion in assets under management and more than 35 years of institutional experience buying, selling, financing and operating commercial real estate Estate. For more information on RMRM, see www.rmrmortgagetrust.com.
Tremont Realty Capital on behalf of its sources of capital, Tremont Mortgage Trust (Nasdaq: TRMT) and RMR Mortgage Trust (Nasdaq: RMRM) is a direct lender that invests in loans backed by medium-sized and temporary commercial real estate. Tremont Realty Capital is the trading name of Tremont Realty Advisors LLC, a subsidiary of the RMR Group (Nasdaq: RMR). For more information on Tremont Realty Capital, please visit www.tremontcapital.com.
WARNING REGARDING FUTURE STATEMENTS
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. When RMRM uses words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “will,” “may” and negatives or derivatives of these or similar expressions, RMRM makes forward-looking statements. These forward-looking statements are based on RMRM’s current intentions, beliefs, or expectations, but there is no guarantee that forward-looking statements will and may not occur. Actual results could differ materially from those contained or implied in any forward-looking statements by RMRM due to various factors. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of RMRM. For example:
This press release relates to recently closed loans and future plans to expand RMRM’s new business as a commercial mortgage REIT and pursue its investment objective, which could mean that RMRM will close additional loans, meet its investment objective and continue its business insist will improve as a result. However, RMRM’s business and ability to borrow and achieve its investment objective are subject to various risks, including the competitive nature of the industry in which RMRM operates and other factors many of which are beyond its control, such as: B. the current Covid19 pandemic. These risks and other factors could prevent RMRM from successfully completing additional credit, developing new business and realizing its investment objective. Once RMRM invests or locks in its remaining capital, its ability to continue growing and fund credit depends on its ability to obtain additional inexpensive capital or to reinstate income from repaying its loan investments.
The information in our “Summary of Key Risk Factors” in our most recent report on Form 8-K, filed with the Securities and Exchange Commission (SEC) on March 24, 2021, identifies other important factors that may cause the actual RMRM’s results differ materially from those expressed or implied in RMRM’s forward-looking statements. RMRM’s filings with the SEC are available on the SEC’s website at www.sec.gov.
You should not place undue reliance on forward-looking statements.
Except as required by law, RMRM does not intend to update or change any forward-looking statements as a result of new information, future events or for any other reason.